Page 9 - AAA JANUARY - FEBRUARY 2018 Online Magazine
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planned capacity growth. Locally-   occurred is the first step in a wider slow-  one-off slots available.”
        based airlines are already having   down in capacity growth in China that no  Bernstein says that
        to rethink their development plans   one expected.” The capacity issues may  “customer feedback on
        with instructions from authori-     well give rise to an A380 order but more  each has been extremely
        ties that new services can only     likely Chinese airlines will up-gauge from  positive, which we heard
        be launched if existing services    A320s to A321s, 787-8s to -10s etc.         again from operators in
        are dropped.” The capacity pot      Twin-Aisle Contenders                       Asia last week.”  And
        is effectively full at the major air-        o, there is absolutely no question   that bullish sentiment is
        ports in China says the report               that Asia is and will continue to   backed up by passen-
        and this may be  a window for                be growth central but how will     ger’s feedback to ratings
        the A380 with Airbus courting      Sthat impact the order books and             agency AirlineRatings.
        China for orders with co-produc-    respective strategies of the big two man-   com which reports “very
        tion. According to Bloomberg a      ufacturers. Wide-bodies have dominated      high levels of passen-
        French  official  “has  confirmed   Asian skies for decades as the capac-       ger satisfaction” for the
        that discussions are underway       ity constraints of Nartia and Hong Kong     A350 and 787. Bernstein
        about an Airbus partnership with    kept the 747 as the dominate aircraft for   says that while the
        China on the A380 superjumbo,       decades.   Those capacity issues have       business case for the
        while saying nothing is yet ready   been replaced by others and the 747 buy     mid-size widebodies is a
        for signing.” The report says that   the 777-300 buy widebodies are still pop-  big tick “the challenge in
        Airbus  “could  hand  over  some    ular with many airlines using them for long   this space is at the large
        interiors  and  finishing  work  if   haul and then a short haul sector. In air-  end,  at  or  above  350
        Beijing agrees to buy more of the   craft finance meetings in Hong Kong in      seats.  The  A350-1000
        slow-selling double-deckers.”       November between airlines, lessors, air-    (at  350  seats)  has  an
        This deal if it come to fruition will   craft OEMs, Steve Udvar-Hazy (Chairman,   acceptable order book
        build on the Tianjin final assembly
        line, which opened in 2008 and
        has built more than 350 A320-
        series aircraft. Production at that
        plant is moving to five a month
        by 2019. Back to China’s airport
        issues  OAG  notes  that  whilst
        capacity growth at the emergent
        secondary markets in China such
        as Hangzhou, Chengdu, Jinan and
        Chongqing continues for many
        airlines, further access to the ‘Big
        Three” cities and their airports is
        central to their development and
        their requirement for additional
        aircraft in the coming years.
        “The new airport development at
        Daxing, Beijing will in theory alle-  Air  Lease  Corporation)  placed  strong  as a variant of the A350-
        viate some of congestion issues     emphasis on the widebody market, saying  900. But, we have been
        at Beijing Capital as both China    that it remains very good, despite concerns  concerned about the abil-
        Southern and China Eastern relo-    commonly expressed over the past two  ity of the engine for that
        cate to the new facility. However,   years says Bernsteinresarch.com.  The  model (Trent XWB 97k)
        unless dramatic increases and       real strength, however says Bernstein’s  to  deliver  on  fuel  burn,
        consistent access to air space      report,  “appears to be around  the new  given that the fan size is
        can be guaranteed, it may be that   models,  specifically  the  A350-900  and  constrained by the same
        the slowdown in capacity that has   787. Each of these models appears to be  nacelle as the A350-900.
                                            largely sold out through 2021, with some

        ASIAN AIRLINES & AEROSPACE                                                             January/February 2018 | 9
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